What is aggregate limit of indemnity?
What is aggregate limit of indemnity?
‘Aggregate’ limit of indemnity is a term used to describe the type of indemnity limit provided by the professional indemnity policy. ‘Aggregate’ means that the total amount of financial cover provided is limited to the amount specified in the policy schedule, arising within the specified period of insurance.
What is aggregate damage?
Aggregate Loss Severity Percentage With respect to any Distribution Date, the percentage equivalent of a fraction, the numerator of which is the aggregate amount of Realized Losses incurred on any Mortgage Loans from the Cut-off Date to the last day of the preceding calendar month and the denominator of which is the …
What does aggregate limits mean in insurance?
Distinct from a per-claim limit, which states the amount an insurer will pay for each individual claim made during the policy period, the aggregate limit is the maximum amount an insurer will pay for all such claims made against the insured during the policy period, no matter how many separate claims might be made.
Which coverage does the general aggregate limit not pay damages for?
Under the standard commercial general liability (CGL) policy, the general aggregate limit applies to all covered bodily injury (BI) and property damage (PD) (except for injury or damage arising out of the products-completed operations hazard) and all covered personal and advertising injury.
What does total aggregate limit mean?
An aggregate limit is a maximum amount an insurer will reimburse a policyholder for all covered losses during a set time period, usually one year. Insurance policies typically set caps on both individual claims and the aggregate of claims.
What is aggregate amount?
noun. a sum, mass, or assemblage of particulars; a total or gross amount: the aggregate of all past experience.
What does aggregate amount mean?
1 : a mass or body of units or parts somewhat loosely associated with one another Froth is an aggregate of tiny bubbles. 2 : the whole sum or amount : sum total spent an aggregate of 10 million dollars in advertising during the past three years.
What does per claim and aggregate mean?
Per-occurrence limits define how much a policy will pay for any one incident or claim. Aggregate limits define how much a policy will pay over the policy’s duration. (Most general liability policies have durations of 6 months or 1 year.)
What is the difference between per claim and aggregate?
What does 2000000 aggregate mean?
The big bucket represents your general aggregate limit, which is the maximum the insurance company will pay for regardless of claim quantity. The big bucket can fit up to $2,000,000 worth of liability, regardless of the number of claims.
Which limit is not included in the general aggregate limit?
The only circumstances in which the general aggregate limit does not apply is to damages because of bodily injury or property damage arising out of the products-completed operations hazard.
What is the maximum amount that an insurer is liable to pay as a claim?
All regular covers would have a limit of compensation from insurers to be fixed at Rs 15 lakh. If any individual operating in a high-risk area or accident-prone zone does not wish to have a cap on the liability, will have the option to choose from an array of covers that would be available in the market.